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The attorney general of Canada and the Yukon government are asking the territory’s Supreme Court to toss a lawsuit from the First Nation of Na-Cho Nyäk Dun (FNNND) over decades of alleged mining mismanagement on its traditional territory.
Both the federal and territorial governments filed statements of defence this month denying all the wrongdoing claimed by the First Nation, including not living up to treaty obligations or properly assessing and managing the impacts of placer mining.
Na-Cho Nyäk Dun sued in December 2025, about a year and half after the catastrophic failure of the cyanide heap leach pile at the Eagle Gold mine. Its statement of claim argues the disaster was a prime example of the consequences it’s suffered because of Canada and the Yukon allowing “unsustainable” development.
Among other things, the First Nation accuses the Yukon of breaching its final agreement by failing to develop and implement a regional land use plan and adequately consult on mining projects. It also accuses Canada of doing the same by failing to monitor and protect fish and waterways from the impacts of mining, and of failing to “act diligently” to fulfil treaty promises.
“The federal Crown denies all such allegations and says that throughout the treaty relationship it has acted, and continues to act, in accordance with the treaty and in a manner consistent with the honour of the Crown,” Canada’s statement of defence reads.
“Canada has not breached the Treaty as alleged.”
Both Canada and the territory claim they’ve adequately consulted the First Nation when required, but that consultation isn’t mandatory in every case. The Yukon also suggests that Na-Cho Nyäk Dun has been, at times, difficult to work with, and that the First Nation is to blame for delays to revamping the territory’s minerals legislation and creating a regional land use plan.
“Yukon remains, and has remained, committed to implementing the Final Agreement and maintaining a productive government-to-government relationship with FNNNND, notwithstanding multiple cases over the past three decades in which FNNND has refused Yukon’s good-faith efforts to engage,” the Yukon’s statement of defence reads.
The territory accuses the First Nation of issuing ultimatums during negotiations, including hinging its participation on the issuance of a staking moratorium or allowing it to veto any projects on its traditional territory. It also alleges the Yukon has offered to provide “additional resourcing” to help the First Nation’s capacity issues when it comes to the volume of files it’s asked to look at, but that Na-Cho Nyäk Dun has, on occasion, rejected those offers.
Still, the territory claims it’s continued to invite the First Nation to participate in discussions and negotiations on future minerals legislation, and signed a memorandum of understanding with it in 2025 to work on land-use planning “within areas” of its traditional territory.
The Yukon also denies any responsibility for the Eagle Gold mine disaster, saying the territory met its “legal obligations to regulate, monitor, inspect, enforce, investigate, respond to, remediate, or otherwise manage matters” related to the project.
“Yukon has acted at all material times pursuant to statutory authority, in accordance with the Final Agreement and its constitutional obligations, and in the exercise of its public responsibilities,” the statement reads.
The First Nation is seeking a number of declarations and injunctions from the court, including a permanent ban on Canada and the Yukon authorizing any development on its traditional territory that isn’t “sustainable” and a halt on staking areas of its traditional territory until a land use plan is in place. It’s also asking for undefined monetary damages, as well as $150 million in aggravated damages from the Yukon.
Canada and the territory argue none of that should be granted.
The case is scheduled to go to trial in January. The Yukon Chamber of Mines has applied to be an intervenor in the case.